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Q. What equipment do you finance? A. ULS is a general equipment lessor. If the equipment makes
sense for your business and carries a price tag between $5,000 and $5,000,000 we
can provide financing. Here are a few examples of equipment have
financed : computers, computer software, signage,
telephone systems, office furniture, commercial laundry equipment,
printing, machine tools, construction equipment, commercial vehicles, ff&e,
gas dispensers, convenience store equipment, etc. A. Soft costs including maintenance, installation, labor, and taxes can be bundled into the total lease request. Return to FAQ's A. Leasing companies offer longer terms, less financial disclosure, less down payment, and bundle in more soft costs than the typical bank. For most of our existing customers, these were the primary reasons they chose to lease. However, if the disparity between the leasing company’s rate and the bank is unreasonably wide, some opt for the bank in spite of additional covenants. In many cases, there are tax considerations which make a lease attractive. Q. Is there any penalty for prepayment? A. With the vast majority of leasing companies, there is no pre penalty per se. However, most will require the full remaining contract balance, which in a non-cancelable lease is perfectly legal. As an independent leasing company, we represent companies who offer a refund of a portion of the unused interest. However, as a general rule, if you intend to buy out of a lease in the first year, it probably would be prudent to utilize another means of financing. Q. Why should I lease when I have ample cash? A. We hear this occasionally, but have heard it less in the last few years. Cash is a precious commodity, especially in the current business environment. Many companies lease although they have ample cash, because it makes good business sense to conserve cash for working capital and growth.
Q. Can I take the Section 179 deduction even though I lease?
A. Under the Section 179 deduction you are able to write off the entire asset in the year acquired even when leased with a fixed purchase at lease end, such as $1.00 lease end buyout (subject to income limitations). This eliminates depreciating the asset over a number of years and provides a favorable tax advantage in the year leased. The new limit through 12-31-07 is $100,000. Please call for more details.
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© 2007 Universal Leasing Services, Inc.
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